Uhler v. City of Olympia

Citations

• 87 Wash. 1
• 151 P. 117
• 1915 Wash. LEXIS 1057

Syllabus

<p>Municipal Corporations—Debts—Limitations—Bonds — Special Funds. A bond issue under the special statute providing for the acquisition of water works, where the ordinance provides that the cost shall be paid out of the gross revenues of the system when acquired, is not a municipal debt, to be considered in estimating the debt limit of the city.</p> <p>Same—Public Improvements—Water Works—Acquisition—Proceedings—Ordinance. An ordinance submitting to the electors a bond issue for the acquisition of water works is not objectionable in that it is not a positive declaration upon the part of the city, but is made dependent upon a subsequent ratification by a vote of the people, where the statute (Rem. & Bal. Code, § 8006) requires the same to be so submitted and ratified.</p> <p>Same—-Water Works—Acquisition—Proceedings—Issuance of Bonds—Change of Plans. Under Rem. & Bal. Code, § 8005 et seg., empowering cities to acquire public utilities in either one of two ways, viz: (1) by the issuance of general bonds or warrants, or (2) by the creation of a special fund to be sustained by the gross revenues of the system out of which special bonds are to be redeemed, a city having adopted the latter method and secured the voters’ assent to a special bond issue of “$90,000 as near as may be” “to condemn, purchase, acquire, add to, maintain, conduct and operate” the system, and limited its bond issue to that sum, it is without power, by a subsequent ordinance, to pay from the general fund $4,500 for the cost of preparing the bonds, legal expenses, commissions, and cost of making extensions and necessary repairs; $90,000 being more than the purchaser of the bonds was willing to advance upon the security of the water system; since the manner of payment was an essential part of the plan to be submitted to the people, and cannot be subsequently changed.</p> <p>Same—Issuance of Bonds—Rate of Interest—Commissions— Validity. Under the statute requiring cities to issue and sell its bonds or